The XJO appeared to be heading for a flattish green close in the final moments of Monday trade to kick off Week 45, which also coincides with the start of November.
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We had a big week last week: the US-Australia-Asia talks broadly (there were a lot of talks!) all increased sentiment intraweek and then we got news late week that the US and China had made a ‘trade deal.’
What that deal really is remains vague, but the most authoritative source we’ve got on the new arrangements come from a communique released by the White House over the weekend. And that presser has one very big claim in it the finance media, and market broadly, appear to have missed.
According to the most reliable website that probably exists when it comes to reporting the facts about Washington, the US government claimed this weekend that China will wind back all tariffs its introduced in retaliation to ‘Liberation Day’ on April 2.
That, prima facie, is huge news – and the market appears to have entirely missed it, perhaps because a lot of finance journalists appear to have done the same. Or, perhaps, nobody believes it’ll last for long. Who knows, but curious to see such a catalyst get missed.
So what about sectors down under? Here was the lay of the land at 3.30pm AEDT:
For what it’s worth, gold currently at US$4,005/oz; iron ore (SGX) at US$104/tn.
Looking at companies in the green:
EOS and DRO both shot up as the latter unveiled a new counterdrone contract in Latin America (client undisclosed) valued at over $20M; EOS appeared to see some contagion upside.
Nova Minerals meanwhile staged a +10% increase intraday based on no news but likely informed in part by the fact gold prices have crossed back over a key level.
Finally, Mayne Pharma up +8% intraday as investors appear to buy back in after bad news from the FIRB last week tanked shares.
And as for the reds:
4D Medical fell -8% to around $1.60/sh as the hotly-traded next-gen lung imaging biotech continues to churn up and down on high liquidity and day-by-day sentiment.
Elsewhere, Coronado Global fell down to around 34cps as the market also continues to decide what to do with its aging coal stocks – themselves the owners of largely aging coal plants, or, exposure to them.
Finally, cold-spray-welder company Titomic, focused on defence applications, appears to have missed out on DRO’s contagion effect; shares fell over -6%.
That’s Market Close for Monday, I’m Jon Davidson, have a great night and we’ll see you on Tuesday.
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